RT Journal Article
T1 Corporate Taxation and Productivity Catch-Up: Evidence from European firms
A1 Gemmell, Norman
A1 Kneller, Richard
A1 McGowan, Danny
A1 Sanz, Ismael
A1 Sanz Sanz, José Félix
AB In this paper, we explore whether higher corporate tax rates, because they lower the  after-tax returns to productivity-enhancing investments, reduce the speed with which small firms converge to the productivity frontier. Using data for 11 European countries, we find evidence that their productivity catch-up is slower when the statutory corporate tax rates are higher. In contrast, we find that large firms are instead affected by effective marginal rates. Using the reduced-form model of productivity convergence of Griffith et al. (2009, Journal of Regional Science 49, 689–720), our results are robust to a host of robustness checks and a natural experiment that exploits the 2001 German tax reforms.
PB Wiley-Blackwell
SN 0347-0520
YR 2018
FD 2018
LK https://hdl.handle.net/20.500.14352/19047
UL https://hdl.handle.net/20.500.14352/19047
LA eng
NO Ministerio de Economía y Competitividad (MINECO)
DS Docta Complutense
RD 10 abr 2025